Evolution in African Mining: Investing in the Energy Transition, ESG, and the Economies

The mining industry faces new challenges to evolve African mining. While powering new strategies and transforming the energy transition, ESG, and the economies, these advancements will change how African mines operate and require careful consideration of the impact of those changes on mining stakeholders.

COP26

COP26 agreements will aim to eliminate coal production in the mining sector. The need for a rapid phase-out of coal production and consumption resulted in 23 nations confirming their commitments to 100% clean energy sourcing—of which five are some of the top coal-powered countries¹.

The two significantly positive takeaways from the COP26 were that a consensus seemed to have been reached on – what one climate scientist described as –“bending the carbon curve²” to avoid disastrous global warming over the next decade.

The second was reaffirming the pledge to provide poorer nations with $100 billion to support them in their climate adaptation strategies.

The mining sector also made commitments to act quickly on Scope 1 and 2 emissions to effect more significant supply chain decarbonisation.

However, Scope 3 emissions remain the greatest challenge. While the sector faces massive challenges, there is also an acknowledgement that the shift demanded by decarbonisation goals provides substantial opportunities.

Footnotes:

1: Mining Digital article: How will COP26 disrupt the coal mining sector?
https://miningdigital.com/supply-chain-and-operations/how-will-cop26-disrupt-coal-mining-sector
Author: Tom Swallow

2: UCLA article: ‘Bending the Curve’: Can We Flat-Line Global Warming by 2050?
https://www.ioes.ucla.edu/news/bending-the-curve-can-we-flat-line-global-warming-by-2050/
Author: Jon Christensen